Friday's low was its weakest level since early October 2024. That was just before bitcoin's rally accelerated as Donald Trump closed in on winning the U.S. presidential election, having signalled his intention to support crypto on the campaign trail.

Market participants, however, were leery about Friday's recovery.

The options market showed that investors are anticipating further losses on bitcoin, as demand for downside protection increased. Data from Derive.xyz, a decentralized options platform, showed a significant build-up of put open interest in bitcoin, or expectations that the price will fall further.

Traders focused on the $60,000 to $50,000 strikes for the 27 February expiry. Those bets suggested that investors are wagering that bitcoin will end up near or at those levels by that date.

"It's a one-way market. Demand for downside protection is extreme," said Sean Dawson, head of research at Derive.xyz. "While longer-term fundamentals for bitcoin remain intact, the options market is clearly signalling that this aggressive grind lower may persist in the near-term."